CNX-NIFTY- A TECHNICAL VIEW -30-12-2016

CNX-NIFTY

Open-8030.60—High-8111.10---Low—8020.80—Close—8103.60 on

29-12-2016

Support:-8077.50/8056.50/8002/7992/7988/7946/7938/7927/7916.40/ 7897/7859/7807/7735-7714/7644.

Resistance:- 8108.50/8132.50/8224.50/8230.65/8244/8257.42/8261.75/8274.95.

It opened on a flat to negative note but recovered quickly and moved in a very short range for quite some time before it started moving up steadily in the latter half of the day and finally closed with a good gain of 68.75 points and near the high of the day. It is buy on dip market now (see my post of 28-12-16) therefore long trade can be tried either above 8112 or on decline but not below 8020 with a stop loss of below 7980. The upside target could be 8130/8185/8199/, it is important to mention here that it is still below its important long term moving average which is placed at 8221(it changes every day) for 30-12-16, therefore it will face huge resistance in the range of 8199---8221and once it moves above 8221 and sustain it will start gaining strength and may continue to move forward else the up move may exhaust at this range. Although technically it is buy on dip market now but since the on-going up move is within the downtrend therefore long call should be handled vigilantly and with extreme caution.

It is important to mention here that tomorrow will the first day of the January-2017 series, therefore market may open with an upside gap, so do not hurry to initiate long position if it opens with a upside gap then wait for the market to settle down before initiating long position.  

Remark: - It is in the downtrend. But now the up move is on within the downtrend therefore buy on dip strategy should be followed till it gives visible sign of up rally exhaustion.  The overall technical setup is bearish.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit  trade.